In Massachusetts there are a lot of counties where FHA will lend this high but for argument's sake, let's explore the other loan type....conforming, conventional.A conforming, conventional rehab loan would required your sister to use 15% down for a 2-unit property that she will occupy. 

I'm really excited to get started.My wife and I currently own a 2 bdrm condo in Newton, MA that we rent out.

Originally posted by @Remigio M.:A

(Ive never done a short sale in MA or VA where Im also licensed, so Im not sure the specifics on those 2 states) These days Id say universally, short sales are hard to complete as banks are not scared of having an REO to deal with.   

Even if they institute their new 1.2%/yr funder's fee as filed with the SEC this month, the max that would generate is another $600k. (1.2% of $50mil)Assuming the average GF loan size is $150k, the most the company could offer as a Tier II would be about 333 loans/year or 27 loans/month. ($50mil / $150k) GF currently is offering around 20 loans/month so they can certainly reach their legal max in short order.

It is located in Northfield, MA.

That's true; I meant commercial bank loans vs conduit or institutional debt. 

First of all, I don't think it matters where you get your Massachusetts license.

There’s nothing wrong with running your circumstances past a loan officer to see what that financial institution might be willing to do.

We are really good at review - we typically have internal accounting departments at our clients looking at our work and other big 4 firms looking at our work (sometimes the partners in the deal are big pension funds and institutional investors who all seem to use big 4).